Japan's benchmark Nikkei retreated into negative territory, after briefly trading in the green midday on Wednesday. Its dismal showing on Wednesday was a drastic difference from Tuesday's robust session, where Japanese shares surged past the 15,000 mark to hit a four-week closing high.

"For the rest of the week, the Nikkei may see directionless trade and a lack of volume because investors need more catalysts to take positions. The benchmark may stay between 14,500 and 15,000," said Masashi Oda, chief investment officer at Sumitomo Mitsui Trust Bank to Reuters.

Softbank, which hit its highest level in a month following a report that the company was seeking to buy a stake in a mobile-messaging service under South Korea's Naver on Tuesday, fell over 1 percent. Automaker Toyota Motor skidded 1.3 percent while Sumitomo Mitsui Financial Group dunked 1.7 percent.

Panasonic however outperformed the bourse, holding onto a 6 percent gain, after the Nikkei newspaper reported that the firm is inviting a number of Japanese suppliers to join it in an investment plan with Tesla Motor.

Speaking about recent slumps in Chinese equity markets, Fan Cheuk Wan, CIO, Asia Pacific at Credit Suisse Private Banking told CNBC's Cash Flow, "The market has priced in imminent financial crisis in China with current valuations reflecting a big equity risk premium. In my opinion, market has already priced in very bearish growth expectations at the National People's Congress which will kick-start next Wednesday. Investors will watch out for more concrete policy signals regarding structural reform progress including the psychical reform which will address shadow banking and local government debt problem."

Sydney flat

Australia's benchmark S&P ASX 200 bounced between gains and losses in rangebound trade on Wednesday but eventually managed to finish slightly higher.

Earnings season dominated the day in Sydney. AGL Energy eased losses from 1 percent to modestly fall 0.2 percent, on news that its first-half profit fell 11.4 percent after a record warm winter reduced demand for energy.

South Korean shares shook off early losses to enter a two-day winning streak on Wednesday.

Asiana Airlines rose steadily to gain 0.7 percent, despite news of a fine of $500,000 by U.S. regulators on Tuesday for failing to assist the families of passengers on a flight that crashed in San Francisco in July last year.

Meanwhile, the korean won posted its biggest daily gain in two weeks, as dollar unwinding by exporters prompted short-covering in the currency. It traded at 1,065, an 0.8 percent addition, against the greenback

Thailand shares pared early gains to finish near the unchanged territory on Wednesday, amid continued political unrest. Investors may also be reacting to Tuesday's announcement of the latest trade data which saw the country's trade deficit balloon to $2.52 billion.

Thai Airways traded unchanged, after reporting a third successive quarterly profit loss. Advanced Info Service lost early gains to trade flat, following calls by anti-government protesters to boycott businesses linked to Prime Minister Yingluck Shinawatra.